The Federal Reserve claims it can continue “tightening” — even though it is still leaving interest rates at historically low levels — and begin unwinding its balance sheet, because the economy is “improving” and “will continue to improve.” But that is only true if one believes the government-manipulated unemployment and inflation statistics which, for example, do not count the record number of Americans who have withdrawn from the labor force.
Eight years after the market meltdown, the US economy remains on the brink of another major meltdown. Student loans, automobiles, and even housing are just a few of the bubbles whose bursting could send the fragile economy into another major recession. Of course, the largest bubble is the government bubble, which will dramatically increase thanks to the administration’s planned spending increases on militarism abroad and make-work infrastructure projects at home.
Instead of just winding down the Feds balance sheet, Janet Yellen should be working with Congress and the administration to unwind the system of fiat currency. A good place to start is with passage of the Audit the Fed bill.
This statement was originally published at The Campaign For Liberty.